It's been a tough year for investors in the Gold Miners Index (GDX (NYSE:GDX)), with the ETF down more than 10% year-to-date and massively underperforming the S&P-500 (SPY). while the miners' performance has been depressing, the setup for the GDX remains very constructive. This points to a higher probability of dips being bought near the $30.00 level in the future and suggests that investors should be looking at starting positions in some of the highest-quality names. Three names that stand out as very reasonably valued with solid management teams are Agnico Eagle Mines (NYSE:AEM), B2Gold (NYSE:BTG), and Skeena Resources (SKE).It's been a tough year for investors in the Gold Miners Index (GDX), with the ETF down more than 10% year-to-date and massively underperforming the S&P-500 (SPY). However, while the performance has been disappointing, it has contributed to the worst sentiment readings we've seen in years for gold miners, and it has left their valuations at their most attractive levels in several years. Meanwhile, though the GDX remains in an intermediate downtrend and a deep correction, we've seen no real damage to the long-term technical picture. This is because the GDX is simply back-testing a multi-year breakout, and so far, finding support in this key area. Let's take a look below:
(Source: TC2000.com)
As shown in the chart above, while the miners' performance has been depressing, the setup for the GDX remains very constructive. This points to a higher probability of dips being bought near the $30.00 level in the future and suggests that investors should be looking at starting positions in some of the highest-quality names. Three names that stand out as very reasonably valued with solid management teams are Agnico Eagle Mines (AEM), B2Gold (BTG), and Skeena Resources (SKE). While all three have very different business models, they all own world-class mines, have industry-leading margins or projected industry-leading margins, and management teams that continue to under-promise and over-deliver.